Rugby Australia statement: Melbourne Rebels' administration
Rugby Australia have issued a statement after the administrator for the financially stricken Melbourne Rebels recommended creditors accept a proposed deal to save the club, adding it may have been trading while insolvent for the last five years.
The Rebels went into voluntary administration in January with Rugby Australia taking over their competition licence and covering player and staff payments until the end of this season.
RA is still working through a decision on whether to wind it up, but PwC administrator Stephen Longley has recommended in a report that creditors accept a proposal from directors to save the club, who this weekend play away at the Crusaders.
Rebels directors have proposed a deed of company arrangement (DOCA) which would guarantee employees 100 per cent of their entitlements, but leave unsecured creditors with as little as 15 cents to the dollar. The deal will be put to creditors, which includes RA, at a meeting on May 3.
A statement read: “Rugby Australia acknowledges the findings of the administrator’s report regarding Melbourne Rebels Rugby Union Pty Ltd issued to the company’s creditors.
“RA continues to solely fund and operate the Melbourne Rebels Club and its teams to ensure participation in the 2024 competitions. We have done so since the company was placed into voluntary administration by its former board of directors in January.
“For clarity, RA remains a creditor of the MRRU. We also welcome the positive news that MRRU employees are to receive full payment of their entitlements under the proposed deed of company arrangement.
“RA notes the public statement made by the former directors of MRRU in response to the administrator’s report. The administrator has not made comment on the strength of the claims of the former directors of MRRU and has attributed no value to those claims.
“The administrator’s report suggests that MRRU and its former directors have been trading whilst insolvent since at least 2018. Given the seriousness of the conduct of the MRRU directors, the administrator has made a report to ASIC.
“RA notes section 7.2 of the report specifically states that MRRU’s financial difficulties are not due to RA’s lack of funding, but rather MRRU’s trading losses, lack of alternative funding, excessive costs and insufficient non-RA revenues.
“RA has complied with all its contractual obligations to MRRU. This includes the payment of all funding (which is subject to an agreement signed under authority by two MRRU directors on behalf of the MRRU board) and also paying all applicable PAYG amounts to MRRU, who misused these funds and did not pay them to the ATO, which was the intended purpose.
“RA maintains that the true financial state of MRRU has not been disclosed to RA for some time – it was only once the company defaulted on its payment plan with the ATO last December that RA was made aware of the full state of the MRRU situation.
“In addition, RA has not been advised by the former MRRU directors that they are subject to director penalty notices from the ATO. Despite multiple requests from RA, the MRRU directors have failed to provide any viable proposal or business plan regarding the future of the Melbourne Rebels.
“Contrary to the former directors’ statement, RA met with the former directors at their request in March to discuss a potential resolution. Despite RA’s request for a proposal, no fully-formed proposal was provided by the group.
“RA remains committed to rugby in Victoria, and will continue to actively consult with relevant stakeholders, as well as our legal and financial advisors regarding next steps. We will confirm our position on the future of the Melbourne Rebels Club in due course.”
After releasing its report in midweek, Longley said the directors’ deal was preferable to liquidation given litigation costs could leave creditors with as little as nine cents. “I’m of the view that the likely return to creditors under the proposed deed will provide a materially better outcome for creditors than a winding up,” it wrote.
The club’s liabilities were detailed in the report, with unsecured creditors and related parties claiming nearly $22million out of total claims of more than $23m. The unsecured creditors include the Australian Taxation Office, which is claiming more than $11m, and the Melbourne and Olympic Parks Trust ($1.14m) which runs the Rebels’ home ground, AAMI Park.
The report revealed in the last three calendar years, the Rebels incurred operating losses of $5.7m (2023), $5.3m (2022) and $5m (2021).
“My preliminary view is that the company may have traded whilst insolvent from December 31, 2018, and that it is likely that all debts that remain unpaid were incurred which could result in an insolvent trading claim exceeding $16.8m,” Longley concluded in its report.
Comments on RugbyPass
wel the crusaders were beaten by a queensland reds side that hadnt beaten them at home since 1999 and queensland reds partied like it was 1999
4 Go to commentsHard to disagree with the 5 points - with the exception that Wilson should be a squad member but, depending on the other loose forward selections, is not yet a shoo-in. McReight is. Aussie is looking a lot better this year and JS has some selection options. Also, Havili’s tendency to get caught, charged down is also a liability at times but he seemed focused (mostly) and is definitely a consideration for utility back-up. Still feel Reihana is a better prospect at 1st five for Saders.
4 Go to commentsYeah nah, still not sure on Havili tbh. Even though I’m a Crusaders fan through and through I’d be stunned if Razor considers him after seeing some of the stunning talent coming through up North.
4 Go to commentsThink it was a great defensive performance by Northampton. They didn't have stage fright in the first half, the Nienaber defense smothered them. They limited Leinster to 15-3 in the first half. It could have been over by then. A great try from Leinster in the start of the second half looked to have sealed it. But Byrne missed another conversion. Northampton started trying little kicks behind the Leinster wingers. Leinster messed one and Smith brilliantly made the conversion. Leinster decided to tighten the game after Byrne missed a straight forward penalty. A few errors got NH into the 22 and they scored and converted with a few minutes left. Another brilliant steal from Lawes saw NH have a final attack which was turned over by Conan. A classic semi final. World record attendance of 82,300. Leinsters 3 week preparation warranted for this one.
1 Go to commentsJust came back from the game and the atmosphere was amazing. Players stayed afterwards for more than a hour to sign stuff and take photos with fans. Great day out.
5 Go to commentsA great game. The Sharks without Etsebeth are a shadow of the team compared to when he plays. The limitations of Some of the expensive Sharks players are being exposed. Credit to Clermont for some exhilaration play at times.
5 Go to comments100% Mr Owens. But who would want to be a referee.? It must be the most difficult job on earth.
1 Go to commentsStarts to be overdone and oversold this systematic SA narrative…which nevertheless has the merit in this case to recognise blatant refereeing mistakes in their favor
5 Go to commentsNice article. Shades of Steinbeck. They can win the final if they take the game seriously; but only if they take it seriously.
5 Go to commentsWhat a sad way to end a glittering career. Somebody should tell him to delete his social media accounts and face the consequences of what he's done. Then he should slip away quietly into obscurity. This isn't likely to happen, something tells me he'll be back in The Sun / Daily Mail sooner rather than later.
5 Go to commentsguys its fine! he understands why he did what he did and has taken accountability for it; why should he have to be accountable to a court? after all he did was abuse people in person - its not as if he was engaging in _online_ abuse!
5 Go to commentsChiefs flanker Kaylum Boshier yellow-carded for collapsing the scrum as it rolled towards the line. It was a maul….
1 Go to commentsyou know, i’m a leinster fan so I want Northampton to lose and it is gonna be tuff with Cortney lawes, Alex michell and the other guys🏉 lets go leinster🏉
1 Go to commentsWelcome to the Pro ranks. Those hard teams of old do hit the sole better though. its a dog fight at the top.
6 Go to commentsCan someone fill me in please, I've read a number of Ben Smith articles now and it seems he's got something again South Africa? Surely, this game was over and done with 7 months ago. Can't we have something a bit more interesting and relevant, or is this the calibre of journalist on this site?
238 Go to commentsNot sure what the Welsh are moaning about. They’ve had far more players off England, than England have had off Wales. Guys like Josh Hathaway and Kane James will play for Wales in the end. And they’ll be fsr better players for having played in the Gallagher Premiership, than they ever would have been had they stayed mired in the shambles that is Welsh rugby.
4 Go to commentsThis is all being blown totally out of proportion. First of all, since half the Irish team isn’t Irish - it’s very likely that none of the Irish players said that at all and, thus, we’re not being arrogant. Second, since half the Irish team is Kiwi - it’s very likely the Kiwi players were predicting a NZ SA World Cup final. Which they got spot on. Good on them!
163 Go to commentsAha. An Irishman with logic! Follow the flow: - Ireland peaks with a >80% win record between 2020 and 2023. And then… - crashes out of another QF at the WC; - Beat a poor French Team; - Beat 6N wooden spoonists Italy; - Play shite against eventual wooden spoonists Wales; - Lose against the most boring, “the worst English team ever” , a team widely regarded as unable to attack; - scrape through against Scotland. This article, No - Trimble, is on the money! Except for one glaring statement: _The Springboks have a few aces in the hole in this debate being the reigning world champions and official world number ones_ There is no debate, boys and girls. There it is. In black and white. “Reigning World Champions and OFFICIAL world number ones”. Come July, the overrated Andy Farrell and this overhyped team are going to enter into a world of hurt.
90 Go to commentsI’d like to know what homoerotic events Daniel enjoyed at 8th man. I clearly missed out!
20 Go to commentsThis article is missing some detail, like some actual context or info about what led to him abusing the ref.
2 Go to comments